PUBLIC VS. PRIVATE: BE AN IMPACT INVESTOR

#investors #publicprivate #impactinvesting
Who will solve the great problems of the nation and the world?
Will it be governments or private citizens?
Or, will it be a little of both?
It was thought that private citizens would never solve anything unless they can make money – gobs of money.
Governments, on the other hand, don’t have any money, but spend it anyway, sometimes futilely.
New York Times columnist David Brooks discussed the new concept of “impact investing.” That is private money going into investments that attack some of the world’s problems. The Atlanta Journal-Constitution published his column Feb. 3, 2015.
Brooks says that the private market, prone to devastating crashes and producing widening inequality, combined with gridlocked, ineffective government aren’t getting the job done.
So a group of smart people with opposable minds – part profit-oriented and part purpose-oriented – have created organizations that look a little like businesses, a little like social-service providers and a little like charities – or some mixture of the three, Brooks writes.
They are creating new impact funds, social stock exchanges and include players like Goldman Sachs and Credit Suisse. The first wave of this sector was led by Ben & Jerry’s ice cream. Now you have an array of capitalist tools ranging from B Corporations like Warby Parker, which gives free glasses to the poor, to social impact bonds. Brooks writes. He quotes at 2010 report by the Rockefeller Foundation and JPMorgan that says impact investing capital could amount to $1 trillion by 2020.
So what’s happening here? Did government failures in helping its people make wealthy people feel guilty – guilty enough to accept a potentially lower profit to help lots of people?
Capitalism is a marvelous institution that has gotten a bad rap. People are beginning to realize that it’s not how rich you become that matters, but how you become rich. Did you do well by doing good? Were you helping others succeed as you were succeeding? Once you’ve achieved success, did you hoard all your gains, or did you use them to help those worthy of your help?
It’s clear not everyone is going to get rich. But there are many vehicles out there that allow ANYONE to get rich. For one of the best, visit www.bign.com/pbilodeau. Check out a model in which success only comes by helping others succeed.
Think back to the days when you were young, and just starting out in the workforce. You probably had an entry-level job for, say, a small business. When the time came for you to move on to other things to better your life, how did your boss treat you when you left? Was he wishing you well, telling you he was proud to have you work for him and offer any lifelong assistance (not necessarily financial) that you might need? Or, was he the type that was upset that you were quitting and leaving him short-staffed? The former likely was a pleasure to work for, because he looked out for you, and you, in turn, made sure you did your best for him. The latter likely had employees who were indifferent toward the boss, didn’t care whether his business succeeded and probably worked under a good deal of stress.
If you become a boss, which kind would you like to be? If you become an investor, which kind would you like to be? People who work hard on being better people tend to have success follow them. Those who don’t, and still achieve success, probably have lots of current and former employees, who got relatively little in return, to thank.
Peter

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